In recent developments that are sure to make waves across the economic landscape, the United States and China have come to a preliminary agreement on a trade framework. This could potentially lead to a full-fledged trade deal after resuming talks in Geneva last month. For those keeping an eye on the stock market, this has fueled an impressive rise, with the S&P 500 and NASDAQ nearing record highs. At the same time, consumers can breathe a sigh of relief as summer gas prices have hit a four-year low, much to the delight of anyone filling up their tanks before a weekend getaway.

This surge in economic positivity seems to have caused a bit of head-scratching among those who predicted doom and gloom. Just a few months ago, financial pundits were wringing their hands about how tariffs would crush the economy. Yet here we are, with an economy not only surviving but thriving, showing strong job numbers, low inflation, and the promise of more tax cuts. Those who banked on panic and sold their stocks early are likely kicking themselves for missing out on one of the broadest market rallies we’ve seen in a while. It’s almost as if the American growth engine has decided to hit overdrive, proving that predictions of the country’s economic downfall were greatly exaggerated.

Behind this economic upswing is a renewed sense of vigor among companies, thanks to a friendlier environment for doing business on home soil. With the administration offering attractive tax breaks and other incentives, companies are relocating their operations back to the U.S. A notable example is General Electric, which plans to move the production of washing machines from China to its Louisville, Kentucky headquarters, investing a hefty $500 million. It seems like the oft-debated tariffs have finally nudged companies to rethink their strategies, focusing on building their futures in the greatest country on Earth.

This shift doesn’t just make sense for businesses; it’s a win for American workers too. With companies moving production stateside, jobs that had been outsourced are again becoming available for American workers. It also hints at an alignment of policy with a pro-capitalist outlook that hasn’t been seen in a while. Perhaps the days of shipping production overseas for cost savings, at the expense of American jobs, are coming to an end. Employers now realize the benefits of being close to their consumers and designers, which simply makes more business sense.

While some might have flipped out over the tariffs, smart businesses and investors recognized the opportunity to reposition themselves advantageously. The so-called “doom” of tariffs appears, in reality, to have been a catalyst for corporate rethinking and strategic adaptation. It turns out that sometimes a bit of foresight and faith in the home team can pay off handsomely. In this game of economic chess, it seems like policy and business savvy have made for a winning combination, setting the stage for continued growth and prosperity.